@Josh Ball mentions, there are issues with foreign investors but, nowadays, it's not necessarily on the tax front anymore.

I had a similr issue a few years ago with a property in Cleveland where my property manager hit the same roadblock.

If you tell someone too early you aren't renewing their lease, especially one who is aggressive, could lead you to issues.

Most landlords don’t go looking for a property manager until they’re dealing with an issue—tenant headaches, late rent, maintenance problems—so your marketing should focus on providing solutions, not just listing your services.Marketing Strategy: Combined or Separate?

.❌ Emotional Stress – Handling tenant issues (especially late payments or evictions) can be stressful, especially if you live in the same building.Hiring a Property Manager in ChicagoPros of Hiring a Property Manager✅ Less Stress & Time Commitment – A property manager handles everything from finding tenants to collecting rent and coordinating repairs.

There's a good chance the issue(s) you face has already been discussed and answered.Ask questions in the appropriate forum.

It's usually the member/borrower's creditworthiness that is the issue and interferes with approval, not the LLC. 

Quote from @Noah Wright: We specialize in this specific issue, actually. 

They want someone who is physically local that can be responsible for issues that come up.If you are required to hire a property manager anyways, might as well just pay them to do the tenant placement.  

I am on the Neighborhood Building Owner's Alliance weekly calls, and we had this ADU issue come up.